Fresh out of college, you are negotiating with your prospective new employer. They offer you a signing bonus of $100,000 today or a lump sum payment of $130,000 three years from now. If you can earn 8% on your invested funds, which of the following is true?

Which statement shows a trend by reporting an item’s value in relation to the value of the same item in a previous year?

The sale of equity and debt securities between investors occurs in the:

A firm has 1.5 million shares outstanding. EBIT is $8 million and interest paid is $2 million. If the corporate tax rate is 35%, what are earnings per share (EPS)?

A loan where the borrower pays interest each period and repays SOME or ALL of the principal of the loan over time is called a(n) ________ loan.

Which of the following CANNOT be calculated?

You need to borrow $23,000 to buy a truck. The current stated annual loan rate is 7.9% compounded monthly and you want to pay the loan off in equal monthly payments over 6 years. What is the size of your monthly payment?

An insurance company promises to pay Jane $1 million on her 65th birthday in return for a one-time payment of $270,000 today (Jane just turned 30). At what rate of interest would Jane be indifferent between accepting the company’s offer and investing the premium on her own?

The process of finding the present value of an amount you will have in the future, using a rate and time periods is called ________.

Which measure can be taken to counteract agency costs?